Digital Transformation and Good Governance in Licensing Services: An Evaluative Study of the Investment and One-Stop Integrated Service Office in Morowali Regency, Indonesia

Abstract

This study evaluates the implementation of good governance principles in the licensing service program at the Investment Office and Integrated One-Stop Service (DPMPTSP) of Morowali Regency, Indonesia — a region undergoing rapid industrial transformation driven by one of the world's largest nickel processing industrial zones. Using a qualitative evaluative approach with six purposively selected informants, data were collected through in-depth interviews, participatory observation, and documentary analysis of official secondary datasets. Two analytical frameworks were applied simultaneously: Dunn's (2018) five public policy evaluation criteria (effectiveness, efficiency, adequacy, equity, and responsiveness) and three good governance principles (transparency, accountability, and effectiveness and efficiency) based on the World Bank (1992) and UNDP (1997) frameworks. Findings reveal that digital transformation through the Online Single Submission Risk Based Approach (OSS RBA) system serves as the primary determinant driving simultaneous improvements across all evaluation dimensions. Key achievements include the issuance of 6,331 Business Identification Numbers (NIB) over 2023–2025, 377 Building Approval Permits in 2024, 119 active Mining Business Licenses, completion of all 40 KPK Monitoring Center for Prevention (MCP) assessment documents, and a positive evaluation from the Ministry of Administrative Reform. However, two structural barriers persist: the systemically lengthy inter-agency coordination required for Land Use Activity Suitability (KKPR) permits, and a significant digital literacy gap affecting the 72.8% of service users who are individual sole proprietors. The study recommends accelerating KKPR mechanism simplification at the national level, developing structured digital literacy programs reaching village-level actors, and establishing mandatory service-level agreements for technical agencies involved in permit verification.